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Facts
The assessee, Shree Bhaidyanath Ayurved Bhawan P Ltd., engaged in manufacturing ayurvedic medicines, filed its return for AY 2022-23. The case was selected for scrutiny, and the AO completed assessment making additions. The assessee appealed to the CIT(A), but the appeal was dismissed ex-parte due to non-compliance.
Held
The ITAT noted the ex-parte dismissal by the CIT(A) and the assessee's submission of evidence during assessment, which the CIT(A) failed to consider. In the interest of natural justice, the ITAT restored the appeal to the CIT(A) for re-examination of evidence after providing a fresh opportunity of hearing to the assessee.
Key Issues
Whether the CIT(A) was justified in dismissing the assessee's appeal ex-parte without considering the explanations and evidence submitted during the assessment proceedings, thereby warranting a remand for a fresh hearing.
Sections Cited
250, 143(2), 142(1), 143(3), 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH KOLKATA
Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey
order
: December 08, 2025 ORDER
Per Pradip Kumar Choubey, Judicial Member:
This appeal filed by the assessee is directed against the order dated 11.09.2025 of the National Faceless Appeal Centre [‘CIT(A)’] passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2022–23. Brief facts of the case are that in this case, the assessee company 2. is engaged in ayurvedic knowhow and manufacturing of ayurvedic medicines and carrying on its business from 1917. The assessee company filed its return of income on 04.11.2022 at a total income of Rs.35,44,36,870/- The case was then selected for scrutiny under CASS in order to verify the following issues- (1) Expenditure by way of Penalty or Fine for Violation of any law (2) ICDS Compliance and Adjustment Shree Bhaidyanath Ayurved Bhawan P Ltd (3) Legacy issue 2.1 The Assessing Officer issued notices u/s 143(2) & 142(1) on various dates from time to time. In response to the said notices, the assessee filed various documents as required by the Assessing Officer. Finally, the assessment of the assessee was completed by the A.O. by passing an order u/s. 143(3) r.w.s. 144B of the Act dated 28.03.2024 wherein he assessed the total income of the assessee-company at Rs.46,49,46,989/- by making various additions.
Aggrieved by the said order, the assessee preferred an appeal before the ld. CIT(A) wherein the appeal has been dismissed by passing an ex parte order as there was no compliance on behalf of the assessee on different dates fixed by the ld. CIT(A).
Aggrieved and dissatisfied, the assessee has come in appeal before us. The ld. AR argued that the ld. CIT(A) dismissed the appeal of the assessee ex parte without considering the explanations and documentary evidences filed before the lower authorities. He also stated that the ld. CIT(A) has failed to consider the relevant details which were submitted during the assessment proceedings. He therefore prayed for one more opportunity may be given by restoring the appeal of the assessee after affording opportunity to the assessee of hearing.
The ld. DR did not raise any objection to the above prayer of the ld. AR.
After hearing the submissions of the counsels of the respective parties and perusing the orders of the lower authorities, it appears to us that there was no compliance before the ld. CIT(A) which has resulted into passing the ex-parte order by the ld. CIT(A). We find that the assessee filed explanations and evidences during the assessment proceedings and the ld. CIT(A) failed to consider the same. Under the 2 Shree Bhaidyanath Ayurved Bhawan P Ltd circumstances, in the interest of natural justice, we are inclined to restore the appeal of the assessee to the file of the ld. CIT(A) for re- examination of the documentary evidences or explanations submitted by the assessee after affording opportunity to the assessee of being heard. The assessee is directed to positively cooperate in the remand proceedings to substantiate its claim.
In the result, the appeal of the assessee is allowed for statistical purposes.
Kolkata, the 8th December, 2025.